Management earnings forecasts expressed as a range have become the most common form of quantitative management guidance. Traditionally, the proxy for the sign and the magnitude of the information conveyed by these forecasts – the forecast news – is calculated as the difference between a...

This study examines individual analyst forecast revisions of annual earnings to provide insight into “walkdown” behavior, in which analyst forecasts begin optimistic and walkdown over time to be pessimistic before the earnings announcement. We examine revisions of individual analyst...